Dubailand Final Case Study 1

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Dubailand Final Case Study

Over the years, Dubai has been able to take advantage of its prime location in order to grow at an excessive rate and create a hub that attracts business from Europe, Africa, and Asia. The oil and natural gas industry in the UAE has allowed Dubai to pull in investors from neighboring countries in the region, as well as significant human and social capital, giving the city even more fuel for excessive growth. Dubai is now a global leader in trade, travel, and business, and it is using its competitive advantages in order to diversify its strengths into a variety of businesses and industries. Through its convenient location, its oil and gas assets, and its diverse human capital, Dubai has positioned itself as the “center” of world trade not only in the Middle East, but worldwide.

It is no surprise that Dubai has been able to use its central location in order become a major player in both the shipping and aviation industries. The UAE was able construct the largest port on the Persian Gulf which made the region a great cargo hub in the Middle East and stimulated trade with China. Dubai has also established one of the largest airports in the world and accommodates over 60 million flying passengers per year. Because of Dubai’s prime location and ease of access, it is now a hot spot for luxury, leisure, and tourism. The vast growth in business and tourism in Dubai make the city an excellent place for investors in the retail, entertainment, and real estate industries to spend their money. Dubai is now filled with lavish stores, restaurants, and nightclubs. The city’s magnificent skyscrapers and extraordinary hotels and real estate are now as impressive as any in the world, and Dubai will continue to use what it has built in order to keep expanding and drawing in tourism money from all over the world. While Dubailand was in some ways inspired by Disneyland, there were numerous differences between the two, most of which were driven by the different conditions and environments. While Disney was an already successful private enterprise in the largest free market economy and its Florida project, Disneyland was led by it. Disney chose the site in Florida for its year round temperate weather, access infrastructure and existing tourism industry. No doubt, state government hospitability to the project would have been a factor in the decision as well and perhaps the State government in Florida encouraged the project and acted as a supportive partner. Disneyland Orlando also had an advantage in having a proven model in its California Disneyland in a fairly similar market – both destinations would aim mainly at American Family holidaymakers from the region, making demand prediction and consumer behavior a little more predictable than if the project were based elsewhere in the world. Dubailand on the other hand, was a project being led and driven by the oil rich Emirate of Dubai’s political leadership. This was one of many enormous development projects in the region that were aimed at building a non oil economy on which the UAE could depend in the post fossil fuel future. It had succeeded in establishing itself and Dubai in particular as a tourism, business and trading hub and was determined to scale those aspects of its economy up, massively. The Emirs controlled the United Emirates with unopposed authority and with immense oil capital which they were able to use to aggressively develop their infrastructure. The Arab leadership represented the Arab population that was now only 5% of the people in Dubai, for example which was filled with expatriate workers taking advantage of the low tax and fast growth environment and contributing to the burgeoning economy of the Emirate. The Emirs protected the local interests and took every advantage possible of talent, capital and expertise from around the world while expertly strategized and managed their economy. While they bult a cosmopolitan culture to attract and...
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